Switzerland Rescues Credit Suisse With $54 Billion

Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland’s central bank.

The European Central Bank hiked official interest rates on Thursday by 0.5 percent.

In the 1980s and 1990s, Credit Suisse merged with First Boston to create Credit Suisse First Boston.

In March 2021, Credit Suisse lost about $10 billion in the Archegos scandal. Credit Suisse has been involved in many other scandals.

There are also financial stresses hitting all banks. The loss of value in long term mortgages and bonds from higher interest rates. Higher default rates on car loans and leases. Losses from crypto assets and investments. Decreases in the prices of most stocks.

Credit Suisse plans to spin out First Boston in 2025.

The current Credit Suisse CEO wants to protect the best-performing investment bank businesses, such as advising on mergers and acquisitions, and pivot toward more wealth management.

1 thought on “Switzerland Rescues Credit Suisse With $54 Billion”

  1. Archegos apparently had very large Gamestop short positions, which as prime broker Credit Suisse had to shoulder. Allegedly Credit Suisse shuffled $200+ billion in debt to Brazil in a shady move, and there are allegations this was mostly the Archegos owned Gamestop short position.

    Naturally, the Gamestop stock owners hoping for a short squeeze are watching these contagion moves with interest.

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